Comments on: Government Puts Home Ownership Further Out of Reach http://www.renovateaustralia.com/2008/03/05/government-puts-home-ownership-further-out-of-reach/ A home improvement blog about renovating our Queenslander house in Townsville, Australia Thu, 02 Feb 2012 00:30:28 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Fred@OPC http://www.renovateaustralia.com/2008/03/05/government-puts-home-ownership-further-out-of-reach/comment-page-1/#comment-13777 Fred@OPC Thu, 13 Mar 2008 11:07:31 +0000 http://www.renovateaustralia.com/2008/03/05/government-puts-home-ownership-further-out-of-reach/#comment-13777 Very nice blog. It sounds as though the incentive and incentive area are so large that they are likely to distort local market values to way you say. You would think that a Government economist would be able to point this out! It also seems like if the Government is concerned about affordable housing, it might be better to (1) legislate building smaller houses. Many builders build only large houses to maximize profit; (2) provide some demand-side assistance to homebuyers, perhaps in the form of tax breaks. But, your point is well taken either way--when they Government gets involved, there are always unintended consequences. Very nice blog. It sounds as though the incentive and incentive area are so large that they are likely to distort local market values to way you say. You would think that a Government economist would be able to point this out!

It also seems like if the Government is concerned about affordable housing, it might be better to (1) legislate building smaller houses. Many builders build only large houses to maximize profit; (2) provide some demand-side assistance to homebuyers, perhaps in the form of tax breaks.

But, your point is well taken either way–when they Government gets involved, there are always unintended consequences.

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